《Monopolistic Competition and International Trade-- Reconsidering the Evidence》.pdf

Monopolistic Competition and International Trade: Reconsidering the Evidence David Hummels; James Levinsohn The Quarterly Journal of Economics, Vol. 110, No. 3. (Aug., 1995), pp. 799-836. Stable URL: /sici?sici=0033-553329110%3A3%3C799%3AMCAITR%3E2.0.CO%3B2-N The Quarterly Journal of Economics is currently published by The MIT Press. Your use of the JSTOR archive indicates your acceptance of JSTORs Terms and Conditions of Use, available at /about/terms.html. JSTORs Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use. Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained at /journals/mitpress.html. Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed page of such transmission. JSTOR is an independent not-for-profit organization dedicated to and preserving a digital archive of scholarly journals. For more information regarding JSTOR, please contact support@. Sat Jan 6 10:31:03 2007 MONOPOLISTIC COMPETITION AND INTERNATIONAL TRADE: RECONSIDERING THE EVIDENCE* We test some propositions about international trade flowsthat are derived from models of monopolistic competition developed by Elhanan Helpman and Paul Krugman. We investigate whether the volume of trade between OECD countries is consistent with the predictions of a model in which all trade is intraindustry trade in differentiated products. We then repeat the test with non-OECD c